Zhi Tong Cai Jing·2025-09-03 07:55Core Viewpoint - Morgan Stanley has downgraded the earnings per share (EPS) estimates for China Duty Free Group (601888)(01880) by 13%, 7%, and 2% for this year, next year, and 2027 respectively, while also reducing revenue forecasts for 2025 to 2027 by 6% to 8% [1] Group 1 - The target price for China Duty Free Group has been raised from 55 yuan to 60 yuan, maintaining a "market perform" rating [1] - The demand for duty-free products has been weaker than expected due to a sluggish macroeconomic environment and intense channel competition, particularly on e-commerce platforms [1] - The gross margin for China Duty Free Group remains weak, especially in online sales [1] Group 2 - Morgan Stanley has lowered its operating profit forecast for this year by 12% due to weak gross margins and economic deleveraging [1] - The company is expected to see improved offline sales and profit margins after the Hainan Free Trade Port opens in mid-December this year, leading to a lighter downgrade in earnings estimates for the next two years [1]